The money will be spent on a new automated distribution system at the company’s Dodge City plant in Kansas and construction will begin later this year. It is expected the new systems will be operational by spring 2015.
Cargill said the new order distribution system will be capable of working with 155,000 boxes of beef, which will be housed in a new 62,000sq ft building. The build will also see Dodge City’s beef handling ability rise by 130,000 boxes.
According to the global beef processing company, a Retrotech automation and Viastore equipment system will be installed and will replace the current system, which has been in use since the 1980s.
President of the site, John Keating, said: “This new distribution system will benefit our customers by improving order accuracy and on-time delivery, in addition to providing better capability to handle the ever-increasing complexity of product offerings shipped to domestic and international markets.
"Installation of this new system will help us better meet our customers’ expectations, something we have demonstrated as a core competency through similar investments made in recent years at our Schuyler, Neb, Friona, Texas and High River, Alberta, Canada, beef processing plants.”
The company’s investment in Kansas is part of Cargill’s US$760m capital expenditure in its North American beef processing plants over the past 10 years.
Keating added: “We take a great deal of pride in the products and services we provide to our customers. I believe Cargill people do a tremendous job serving our customers and the proof is when they continue coming back for more of our beef.”